Looking for stocks with cheap valuations and prospects of decent returns? Try identifying stocks based on price-to-book value, say analysts. The PBV of many quality midcaps is currently below historical values. Carborundum Universal, for instance, is trading at PBV of 2.46 compared to its five-year average PBV of 3.86. The stock, with a return on equity of 15% and return on capital employed of 19%, can give 22% returns in the next one year, according to Bloomberg. Similarly, PBV of midcaps like Castrol India, CCL Products (India), Cochin Shipyard, Engineers India, Eris Lifesciences, Gujarat State Petronet and Phillips Carbon Black, among others, is cheaper compared to their own five-year averages. “In view of distorted FY21 earnings due to lockdown, price-to-book would be an apt metric for historical comparison,” said Sonali Salgaonkar, analyst, Jefferies India. ET has compiled 15 such stocks which can give returns of 15-35% in one year, according to Bloomberg consensus estimates.